jlzwhite.gif (125550 bytes) Service Bay Management
   Posted February 04, 2008                                                                          JLZ Business Services
Our Service Bay Management Section provides valuable on-line information for the auto repair and smog shop owner. Browse away, we're certain you'll find something to make your business more successful.
Make Sure Your Price is Right for Engine Repair
If you are in the business of selling and installing engines, pay close attention to the way your estimates are written.

According to Section 9884.9 of the Business and Professions Code, an estimate must list a specific job with a specific price for that job. Each year, the Bureau of Automotive Repair receives hundreds of consumer complaints related to price quotes for rebuilt engines. Consumers believe they are getting an engine for a certain price, only to discover that their original engine cannot be rebuilt and that the total cost has gone up substantially.

There are only two choices when entering into this type of transaction. One option is use of the "tear down" estimate. The other is delivering the product for a stated price. A "tear down," as described in Section 3353{b) of Division 33 of the California Code of Regulations, is used to determine the condition of a component in order to prepare a complete estimate. This way a customer knows exactly what has to be done, along with the total cost.

So, when you write estimates or advertise for engines with a price based upon a rebuild able core, think carefully about your approach. You may have committed yourself to replacing the engine at the original agreed-upon (estimated) price, regardless of the core's condition.

To get more information about the proper procedures for writing a "tear down" estimate, consult Section 3353 of the California Code of Regulations or contact one of the BAR field offices.

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